Sunflower Bank Overdraft Fee Class Action Settlement

Consumers who had a checking account with Sunflower Bank, N.A. and were charged certain non-sufficient funds (NSF) fees or overdraft fees on check or ACH payments between June 10, 2016, and June 30, 2020, may be eligible to receive a cash payment or account credit from a class action settlement.

Sunflower Bank N.A. agreed to pay $450,000 to settle a class action lawsuit alleging that it improperly charged multiple NSF and overdraft fees on single transactions when merchants re-submitted payments after they were initially declined for insufficient funds. The lawsuit claimed these practices violated the bank’s account agreements and the implied covenant of good faith and fair dealing.

In addition to the cash settlement fund, Sunflower Bank will forgive $69,259 in uncollected fees as part of the settlement.

Who is eligible for an NSF and overdraft fee settlement payment?

Class members include former and current account holders that meet the following criteria:

• They had a checking account with Sunflower Bank, N.A. at any time between June 10, 2016, and June 30, 2020.
• They were charged a non-sufficient funds fee or overdraft fee on a check or ACH transaction that was re-submitted by a merchant after being returned for insufficient funds.
• The fee was not refunded by the bank during the class period.

How much is the Sunflower Bank class action payout?

• Pro rata cash payment: Payment amount will be determined by the number of retry fees each class member paid.
• Debtforgiveness: Class members with uncollected qualifying NSF or overdraft fees will have their debt forgiven.

No claim form required

Class members do not need to file a claim to receive a payment or account credit. Sunflower Bank’s records have been used to identify eligible current and former account holders.

Payout options

• Current account holders: Will receive a direct credit to their Sunflower Bank account.
• Former account holders: Will receive a check mailed to their last known address.
• Class members with uncollected relevant fees: Will have those fees forgiven automatically.

Settlement fund breakdown

The $450,000 settlement fund of $450,000 will include:

• Settlement administration costs: Estimated at $35,000
• Attorneys' fees: Up to $150,000
• Attorneys' expenses: $2,216.78
• Service award to class representative: Up to $7,500
• Payments to eligible class members: Remaining settlement fund
• Forgiveness of uncollected relevant fees: $69,259 (in addition to the cash fund)

Important dates

• Deadline to opt out: Aug. 25, 2025
• Final approval hearing: Sept. 24, 2025

When is the Sunflower Bank class action settlement payout date?

Payments will be issued to eligible former and current account holders approximately 60 days after the court grants final approval of the settlement.

Why was there a class action lawsuit and settlement?

This class action lawsuit was brought because Sunflower Bank, N.A. was accused of charging multiple non-sufficient funds and overdraft fees on a single transaction, specifically when merchants re-submitted transactions after they were initially declined for insufficient funds.

The plaintiff alleged that these practices breached the bank’s account agreements and the implied covenant of good faith and fair dealing. Sunflower Bank denied the allegations but agreed to settle to avoid the cost and risk of further litigation.

Sources

1. Class Notice
2. Settlement Website FAQ Page
3. Settlement Agreement